March 3, 2020 / 8:29 AM / a month ago

UPDATE 1-UK's CMC Markets raises income forecast again as virus fears drive trading

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March 3 (Reuters) - Online trading platform CMC Markets on Tuesday raised its annual income projections for a third time, as it reported a strong performance in January-February, a period marked by high trading activity because of the coronavirus scare.

Net operating income for the year ending March 31 should likely beat the current market consensus of 199 million pounds ($254.3 million) to 202.3 million pounds, CMC said.

“The recent market conditions experienced have seen heightened trading activity amongst CMC’s clients over and above the strong performance delivered to date,” the company said.

The coronavirus, which has quickly spread to dozens of countries and claimed more than 3,000 lives, has rocked global financial markets, but the outbreak has also resulted in more intensive trading activity and higher volatility, helping online trading platforms.

The CBOE volatility index, a widely followed gauge of Wall Street volatility, scaled a two-year high on Friday, while world stocks suffered their worst week since the financial crisis in 2008.

Shares in CMC were up 4.2% at 160 pence on the London Stock Exchange as of 0808 GMT.

Last week, CMC rival Plus500 also reported a significant increase in customer trading activity.

$1 = 0.7825 pounds Reporting by Sachin Ravikumar and Muvija M; Editing by Bernard Orr and Vinay Dwivedi

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